F581 - Markets in Action

F581 - Markets in Action

1. Competitive Markets

   • Demand
     • Determinants of demand
       • Normal goods
       • Inferior goods
       • Substitutes
       • Complements
     • Movements
     • Shifts
   • Supply
     • Determinants of supply
     • Movements
     • Shifts
   • Market Equilibrium
     • How prices are determined
   • Elasticities
     • PED
     • YED
     • XED
     • PES

2. Managing scarce resources

   • The Economic Problem
     • What to produce
     • How to produce
     • For whom to produce
   • Economic resources
     • The factors of production
   • Specialisation
     • Division of labour
     • Exchange
   • The role of markets in allocating scarce resources
   • Opportunity cost
     • Production Possibility Curve (PPC)

3. Market Failure and Government Intervention

   • Types of Efficiency
     • Allocative
     • Pareto
     • Productive
   • Externalities
     • Social Costs
       • Private Costs
       • External Costs
     • Social Benefits
       • Private Benefits
       • Private Costs
     • Negative Externalities
     • Positive Externalities
   • Methods of Government Intervention
     • Effectiveness in correcting Market Failure
   • Merit and Demerit Goods
   • Public, Private and Quasi-Public Goods
     • Meanings
     • Differences
     • Examples